RPM enters into $600 million unsecured revolving facility through PNC

By Jennifer Chiou

New York, July 6 - RPM International Inc. and certain of its subsidiaries entered into on June 29 a five-year $600 million revolving credit facility, which includes sublimits for the issuance of swingline loans, according to an 8-K filed with the Securities and Exchange Commission.

PNC Bank, NA acted as administrative agent.

The filing said that the new facility expires on June 29, 2017 and may be expanded to up to $800 million.

Borrowings may be made in dollars or certain other foreign currencies in an amount of up to $600 million. Amounts drawn will bear interest at Libor plus 87.5 basis points to 170 bps.

Additional borrowers include RPM Enterprises, Inc., RPM Lux Holdco SARL, RPOW UK Ltd., RPM Europe Holdco BV, RPM Canada, Tremco illbruck Coatings Ltd., RPM Canada Co. and Tremco Asia Pacific Pty. Ltd.

In connection with the new credit agreement, RPM terminated its $400 million four-year revolver.

Restrictive covenants state that the company's consolidated leverage ratio may not exceed 60% of the sum of its consolidated debt and consolidated stockholders' equity and its consolidated interest coverage ratio may not be less than 3.5 to 1.0.

Proceeds from the new loan will be used to refinance existing debt, to finance working capital and capital expenditure needs and for general corporate purposes.

RPM is a Medina, Ohio-based holding company with subsidiaries manufacturing and marketing coatings, sealants and specialty chemicals.

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